I came across this question posted by xBladexDragonx on Yahoo! Answers:
If a life insurance policy ends, do the beneficiary still get the money when the person dies?
According to my mom, my dad opened a life insurance policy around 1985-1987, it was a 20 year policy. Well, 20 years ended 2-4 years ago. Last Sunday, the 26th (also my birthday… ironic…) my dad passed away. I was wondering if the life insurance is still claimable.
It was one of the answers that made me write this. The answer was from mbrcatz who is a top contributor through Yahoo! Answers:
Just like a lottery ticket, once you stop buying it, you can’t “collect” if your number comes up.Insurance is not a savings or investment account – it’s a bet, between you and the insurance company, if you’re going to live, or die, before the policy expires.
I guess I see this as a learning opportunity. It could be a great opportunity to learn from other’s mistakes. Or, even better, it could be a great opportunity to learn about the misinformation that floods the financial industry.
I’ve always been told there are two certainties in life, death and taxes. So I guess I’m confused by the gamble? Is that what term insurance is? Then why not use permanent insurance? Maybe I’m just not a gambler. Of course, I enjoy a good trip to the casino now and then. I enjoy the entertainment provided by gambling. Yet I am baffled by the way in which people gamble with their lives, the lives of their loved ones and their money. If you are guaranteed to die, then why not guarantee your insurance paying out by setting it up right? It seems simple to me, am I missing something?
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